Ideal Finance Ltd (IFL) is ramping up its branch network on the back of several key recent developments. These include attracting new Foreign Direct Investment (FDI) from India’s Mahindra & Mahindra Financial Services Limited (MMFSL).
With the latest investment, MMFSL is now Ideal Finance’s largest shareholder with a 58.2% stake, making Ideal Finance its second foreign subsidiary. MMFSL’s total investment in IFL amounts to Rs. 2 billion.
Ideal Finance achieved a simultaneous increase in profitability and a reduction of its NPL ratio. Profit Before Tax (PBT) increased by 76% to Rs. 288.4 million in the financial year ended March 31, 2021, on a year-on-year (YoY) basis. Profit After Tax (PAT) grew by 74% to Rs. 183.8 million YoY. Gross NPL ratio improved to 3.3% for the financial year, from 5.2% in the previous year.
“Mahindra & Mahindra Financial Services demonstrating its confidence in Ideal Finance and in Sri Lanka with this investment is a timely vote of confidence on the country’s economic prospects and in Ideal Finance’s stability and growth trajectory,” said Chairman, Ideal Group, Nalin Welgama.
“The company’s stellar performance in the midst of numerous challenges, in out-performing the industry in all key indicators, demonstrates that confidence in Ideal Finance was well-placed,” he said.
Ideal Finance CEO Duminda Weerasekara said, “Prudent strategic changes delivered dividends, as evidenced by this performance. However, it is perhaps even more commendable that in addition to short-term improvements, developments undertaken during this challenging period has laid the foundation for a high long-term growth trajectory – particularly with the launch of our new digitization strategy.”
Ideal Finance opened its 13th branch in Welimada recently, as part of the company’s massive expansion drive to more than double its branch network, by adding 15 new locations within the current financial year (FY 2021/22). The Welimada branch opening will be followed by the opening of new branches at several locations next month.
– Sunday Observer Sri Lanka
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